ANNUAL REPORT of GROUP CONTENTS
2009 ANNUAL REPORT 02 Brief Introduction 04 10 Great Events in 2009 06 Address by Chairman of the Board of Directors 08 The Company's Governing
General Manager's Work Report Organizational Structure The wholly owned enterprises, the holding enterprises and the 1st class shareholding enterprises of YUDEAN Group Party Construction Work Corporate Culture Human Resources 18 The Company's Performance
Production Safety State of Operation Development and Construction
26 Enterprise Citizen
Electric-power Output Green YUDEAN Paying Taxes Helping-the-poor Activities Public Benefit
30 The Company's Honors
32 Memorabilia Brief Introduction
Guangdong Yudean Group Co., Ltd. is a young enterprise with a historic background of one century. YUDEAN's history can be traced back to the 1880s. In 1888, the first electric lamp was lit up in the government office of the governor of Liang Guang (Guangdong and Guangxi), and in 1890, some patriotic oversea Chinese set up the first electric light company of national capital of China in Guangzhou. On August 8, 2001, Guangdong Province took the lead in the electric power system reform, and set up Yudean Group on the foundation of the power generation business of the former Guangdong Electric Power Holding Company. The company's registered capital is 20 billion Yuan RMB. Its stock ownership is held by Guangdong Province' government and China Huaneng Group Co., Ltd., each holding 76% and 24% respectively. Its present number of staff members is 13000 odd. It is the largest and strongest power generation enterprise in Guangdong Province. Up to the end of 2009, the company's total assets in terminalterminal examination had amounted to 105.788 billion Yuan, the installed capacityy ooff its ffully-fundedully-funded power plants and plants in its stock controlling reached 19787.22 MW, in which there are 11 power plants with an installed capacity more than 1000MW. YUDEAN has 80-plus institutions either fully-funded or under its stockk controlling or in its stock participating, and its stock controlling also covers the listedted company, GuanGuangdonggdong Electric Power Development Co., Ltd.(GED). The company's industry covers many kinds of energy source, such as thermal power, hydroelectric power, wind power, nuclear power, LNG, biomass power and so on; its area covers Eastern, Western, Guangdong and the Pearl River Delta, and it is extending beyond the province and beyond the sea aggressively. In recent years, the company carried out its diversified development strategy actively, made great breakthroughs in many fields, such as coal, navigation, natural gas, finance, and equipment manufacture, tried its best to extend its industrial chain towards the upper and lower streams of the main work, and achieved a remarkable uplifting of its core value. The company has got excellent scores for eight years running in the examination of the state-owned responsibility of asset management of the province, ranked at No. 124 in the rating of the top 500 enterprises of China in 2009, and ranked at No. 8 in the top 100 enterprises of Guangdong Province in 2009. While providing safe, economical and reliable power to the society, YUDEAN is trying its best to fulfill its social responsibility, create green energy sources and realize a sustainable development of the company. In all its power plants, it carries out all-inclusive and all-process clean production, and reduces its pollutant emission indicators all the time. So far, the desulphurization facilities for generator units of 11870 MW has been completed and put into operation, the company has become the first power generation enterprise with all generating units having finished the desulfurizing process, which will reduce 280,000 ton sulfur dioxide discharge each year. Today's YUDEAN is just carrying out our development strategy "Taking Energy Source as the Core, Keeping Well-coordinated Development of Relevant Industries, Basing Ourselves upon Guangdong, Facing the Whole Country, Opening Up the International Market, and Build Up an Energy Source Group Company with International Competition Capability", adhering to our business philosophy of "Harmonious Cooperation and Growing Together, Keeping to Justice and Being Innovative" and the business mission of "Great Virtue, Great Power, Benefiting the Country and the People", realizing new leaps continually, and shining with even more dazzling splendor.
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02 03 Great Events in 2009
Provincial Governor Huang Huahua Led His Team to Inspect YUDEAN, Highly Praising YUDEAN's Achievements and Its Outstanding Contributions 1 to the Province On January 12, 2009, Mr. Huang Huahua, vice secretary of Party Committee and provincial governor of Guangdong Province, and Huang Longyun, member of Party's standing committee and vice-governor of the province, led a team to inspect Yudean Group. They highly praised YUDEAN's great contributions to the province' economic development and financial construction since its establishment, especially its great achievements in economic benefit, environmental protection, and reform in the joint stock system. He encouraged YUDEAN to search after chances in the international financial crisis, and realize new leaps forward for the company.
Successful Purchase of 20% Stock Ownership of North Electric Power Company 2 On April 20, 2009, the company and CITIC Pacific signed a contract to decide that YUDEAN would spend 1.98 billion Yuan to purchase 20% stock ownership of North United Electric Power Company, to become the second largest major shareholder of the largest power generation enterprise in Inner Mongolia. This action will not only further expand the company's development space outside the province, but also lay a good foundation for the company's construction of its upstream coal resource industrial chain and serve as a good supplement for the company's development of its main business, so as to become one of the important measures to optimize its industrial structure, strengthen its risk coping capacity and realize sustainable development.
3 Ranked at No. 124 in the Top 500 Chinese Enterprises in 2009, and Jumped to No. 8 in the Top 100 Enterprises of Guangdong On September 5, 2009, the list of Top 500 Chinese Enterprises of 2009 rated by China Enterprise Association and China Entrepreneurs Association was released officially, and YUDEAN ranked at No. 124 with its business income of 46.3 billion Yuan. Moreover, Yudean Group also jumped to No. 8 in the Top 100 Enterprises of Guangdong Province in 2009, advancing by 6 positions from the previous year.
Signed Agreements for Long-run Coal Supply with Many Key Coal Enterprises, to Ensure Safe and Economical Coal Supply for the 4 Company In 2009, in order to strengthen the cooperation with state-owned key coal mines, the company signed 5-year long-term agreements with several key coal enterprises in succession, such as Shenhua, China National Coal Group Corp., Yitai, etc. In the import of coal, we signed a 3-year agreement with Russia for supply of 3 million ton coal, and signed a 3-year 11 million ton coal supply agreement with KPC Company of Indonesia. The signing of these agreements has not only ensured the company's safe and economical supply of fuel in the year 09, but also provided a strong guarantee for the company's stable and reliable supply of coal in the coming four years.
Great Progress in Regulating the Employees' Investment and Share-holding 5 and in Deepening the Reform Up to the end of December 2009, 27 institutions under the company finished their first-stage work of regulating of the investment and share-holding of the employees of the power system of the state-owned enterprise and deepening of the reform, and got some initial achievements. Regulating of the investment and share-holding of the employees of the power system of the state-owned enterprise is a requirement from the upper national asset supervisory authorities, and also a need of Yudean Group in its struggle to become an energy source group with international competition capability. Successful Registration of Three CDM Projects of the First Batch In 2009, Huizhou and Qianwan LNG power plants' CDM projects got registered successfully one 6 after another, which has aroused a great attention from the CDM industry of the world. According to the relevant contract, the three projects together with Shibeishan Wind Power's CDM project, will bring net income continually for the related companies. The execution of the CDM project has reflected the fact that YUDEAN Group's contribution to slowdown of the global warming trend has been recognized internationally, and also shown that Yudean Group's operational philosophy of clean energy and harmonious environment is of profound and lasting social significance.
Corporate Culture Propaganda Work Went Forward in a Profound Way In 2009, the company compiled its Corporate Culture Construction Program, which clarified 7 the guiding philosophy, execution principle, objective tasks, system guarantee and measures for each stage of the company's construction of its corporate culture. Meanwhile, it increased its efforts in the propaganda and training of the corporate culture, held two terms of training class for backbone leaders in corporate culture, and two terms of training class for high-leveled managerial personnel, attended by 105 high-leveled managers and 147 middle-leveled managers altogether. Each institution also carried out various activities to implement the corporate culture according to their actual condition.
In Response to the Situation for Fuel and Energy Saving and Environmental Protection, We Started Up Several Great Projects, Such as Changing from Burning Anthracite to Burning Soft Coal, Reconstruction of the Generating Units for Increase of Capacity 8 According to the inland present status of the fuel market and the development trend, the company adjusted its policy timely, and started up the feasibility study on the changing from burning of anthracite to burning of soft coal for the power plants in Zhanjiang, Shaoguan, Yunfu, Luoding and other places. Meanwhile, in order to adapt to the new requirement for energy efficiency in the situation, we started up a group of major research and technical renovation projects, such as the feasibility study on the capacity increase of the 300MW unit, capacity-expansion of Shajiao C Power Plant and Pannan Power Plant's desulfurizing facilities, the changing of Zhanjiang Power Plant's electric precipitation into dust catcher, and so on. Pannan Power Plant's "Project of Energy System Optimization and Energy Saving Reconstruction" won an award of 10.825 million Yuan from the government as the state's first financial incentive for energy saving technical reconstruction in 2009.
Built the Commercial Net and Put It into Operation Successfully According to the requirement for strengthening intensivism control and realizing a sunlight purchasing, the company took the lead in building its Commercial Net, and finished the 9 construction and on-line operation start of the E-commerce platform. The system chiefly includes some functional modules, such as supplier management, price inquiry and bidding for material purchasing, project bidding and management of evaluation of bids, and has such characteristics as centralized arrangement, level-by-level application, resource integration, information-sharing, standard flow, closed-loop management, full-process supervision, and so on. Up till December 31, 2009, the number of members registering in the Commercial Net reached 1438, and 1065 of them are qualified suppliers of the institutions using the Commercial Net. The purchasing items are 7943, and the transaction amount is 90.29 million Yuan.
Won the Title of "Excellent Institution in Operating Performance Examination" for 8 Years Running 10 In the operating performance examination result of 2008 for 19 enterprises within the province released by the Provincial Committee of State-owned Assets, Yudean Group ranked among the top ones, as "Excellent"; So far, Yudean Group has won such an "Excellent" result in the operating performance examination for 8 years since its establishment in 2001.
04 05 Keep Innovative and Creative, and Make Progress All the Time
Pan Li, YUDEAN Group's Chairman of the Board of Directors, and Party Secretary Address by Chairman of the Board of Directors
The year 2009 was a year full of ups and downs, with both crises and challenges. In the year, while celebrating the 60th birthday of our great motherland, the international financial crisis continued to spread, the market situation became more and more serious, and every walk of life encountered great shocks and baptisms; In the year, YUDEAN Group made concerted efforts throughout the company, made all-round arrangements closely around the most important mission of development, strengthened management in a down-to-earth manner, tried all means to look for opportunities in the crisis, our production safety continued to keep a stable trend, our operating performance rose greatly, our development space was expanded continually, our industrial structure kept being optimized, and all our jobs got excellent achievements: We finished the task of 94.3 billion kilowatt-hours of electric quantity for entering the grid, reaching the excellent value of examination of electric quantity 24 days ahead of schedule; Our business income amounted to 40.72 billion Yuan, with an increase rate of 3.00% from the last year, and our operating profit reached the highest level in history; In all the thermal power area, we turned a loss into profit, and made new breakthroughs in low-cost expansion and "going out" for development, for example, we used a low price of 1.98 billion Yuan to purchase 20% stock ownership of North United Power Company successfully, becoming the second largest shareholder of the largest power generation enterprise of Inner Mongolia. In 2009, YUDEAN ranked at No. 124 in the Top 500 Chinese Enterprises in 2009, and jumped to No. 8 in the Top 100 Enterprises of Guangdong Province, showing our competitive power was further upgraded. In retrospect to the work in 2009, our achievements could not get away from the correct leadership and support from the provincial Party committee and provincial government and the relevant departments, and they have also crystallized the hard working and selfless dedication by all the workers of YUDEAN. The fourteen thousand people of YUDEAN made concerted efforts to overcome the hard time, and lived through all kinds of tests, so, the achievements are hard-won, and their spirit is very praiseworthy. Here, I extend my great respect to all the leaders, shareholders and all walks of life of the society for their support for YUDEAN's development! I express my heartfelt thanks to all the stuff members who have made selfless contributions to YUDEAN's development! When looking back, we feel gratified; When looking forward to the future, we feel heavy responsibilities on our shoulders. In 2010, the international financial crisis is continuing to spread and intensify, the competition in the industry is getting more white-hot, both challenges and opportunities are unprecedented. In the face of the complicated economic environment, YUDEAN Group will adhere to its fixed line of thinking and direction, stick to the corporate culture "Joint development, symbiotic growth, keeping to justice and making innovation", base ourselves upon the current period, look ahead in planning, consolidate the advantages, catch opportunities in changes, create conditions in adversity, consider the situation properly, develop steadily, use a more liberated thought, more rational method, more steady work-style, and more lofty fighting to consolidate the development base; in the mode of business operation and management tools, we shall strive to innovate, broaden the development road for the company, try to raise the company's specialized operation capacity and overall operational performance, open up new situations on the road to build up an energy source group company with international competition capability, so as to promote the company's development faster and better! The new starting point has kindled new hopes, and the new blueprint has shown new resplendence. In the face of new opportunities and challenges, let's work in one mind, strive hand in hand, and use a firm faith and steady steps to march towards the year 2010 full of hope!
06 07 2009 ANNUAL REPORT
Consolidate the Foundation, Innovate the Mechanism, and Enhance the Group Company's Marketability in All Aspects
Deng An, director, general manager and vice Party secretary of YUDEAN Group
Thee Comompany'spany Governing
General Manager's Work Report (Abstract)
In 2009, owing to the impact from the international financial crisis, the company's operation and development met with new tests. In the first half year, the whole society's power generation amount and power utilization amount dropped sharply; although they became stable and began to rise again in the second half year, the power generation market within the province was greatly squeezed because of the great increase of power supply to the west in the whole year; In the first half year, the fuel price was stable on the whole, but in the second half year, the coal price and freight rate went up at the same time. The state's environmental standard became stricter, so, it became more difficult to get approval for general thermal power projects. In the face of difficulties and challenges, under the care and guidance by the provincial Party committee and government and the departments concerned in the provincial Committee of State-Owned Assets, and under the correct leadership by the Board of Directors and Party Committee of the Company, we did good jobs in our operation, and kept a good operating performance and development trend: We reached the excellent value 24 days ahead of schedule in the annual examination of grid entering electric quantity carried out by the provincial Committee of State-Owned Assets; in addition, we turned a loss into profit in all the thermal power plants. The Company's Governing
Retrospect to 2009
(I) Made Great Efforts to Consolidate the Foundation for Production Safety, Keep the Overall Situation of Production Safety Stable In the year 09, in the company's production safety, we stressed the basic management and base-level work, trying to raise equipment reliability, so, the overall situation in production safety was stable. We organized some campaigns, such as "Year of Production Safety", building up "Excellent Work Groups" and so on, to consolidate the basic management Guangqian Company and base-level work. We set down and implemented some security management rules and regulations, such as key measures for preventing accidents that cause death or injury to groups of people. We carried out supervision over construction projects in a strict manner; We fulfilled the task of keeping electric power supply for the 60th National Day and the "Two Top-Leveled Meetings of the Country" smoothly. We standardized the repair process and quality control, which has increased the trouble-free continuous running time of the generating units, and laid a good foundation for fulfilling the annual electric quantity task.
(II) By Improvement of Management, We Dug Up the Operation Potentials Continually In the face of the ups and downs of the market environment, the company not only changed the past midyear working conference into the midyear operation working conference immediately, but also adjusted the managerial means, thus, we reached all the check indicators satisfactorily in the end. By strengthening the fuel operation management, we enhanced the company's capacity in coal storage and transportation, further lowering the cost of transport. By improving the cash flow forecast and management, we upgraded our fund intensivism level and professional management level. We expanded our financing channels, and exercised strict control over the administrative cost; By cutting down and shortening meetings, we saved nearly 20% of the convention expenses of the head office.
(III) By Broadening our Line of Thinking to Seek Opportunities in the Crisis, We Expanded Our Development Space Greatly We carried out the construction of a total of 7049.5 MW of generating units smoothly, and at the same time, continued the desulfurization and denitration projects, bringing a new peak in construction projects. By execution of the low cost expansion strategy, we became the second largest major shareholder of the largest power generation enterprise of Inner Mongolia, further expanding our development space outside the province. We expanded our navigation hauling capacity, too. The company has already had a hauling capacity of 1.468 million dead weight tons, with a year-on-year increase of 48%, guaranteeing a great capacity for transportation. Our clean energy development got new breakthroughs, as the CDM projects of Huizhou and Qianwan LNG power plants got registered successfully. We went all out to carry forward the "Going Out" strategy, and took an active part in the exploitation of the resources in West China.
08 09 2009 ANNUAL REPORT
(IV) By Down-to-earth Implementation in All Aspects, We Upgraded the Company's Quality of Management In execution of the informationalization strategic planning, we did some key informationalization projects, such as YUDEAN Commercial Net, the real-time production monitoring system, the EIP system and so on. In carrying forward the company's energy efficiency work, we tried our best to dig up the excavator set's energy saving and power generation potentials, to raise the economical efficiency and reliability of the set. We made great efforts in the preparation work for the second-stage denitration of the "Blue Sky Project", and upgraded the enterprise' level of environmental protection. Taking the activity of building up "Work Groups Excellent in All Four Aspects" as the goal, we increased the exchange of jobs of high-leveled managerial personnel, and the company and Shajiao C Power Plant were rated as advanced institutions in Guangdong Province' activity of building up "Working Groups Excellent in All Four Aspects" for state-owned enterprises. We made proper arrangements for the surplus workers from the stopped generating units, dup up the potentials of the present personnel, and offered great support for the project of construction of new power plants. By starting up the policy research work, we set 8 research topics closely relating to the company's development situation. Our archives management work is being standardized and normalized. The company was the first to pass the state's Class II standard for comprehensive management of archives among the provincial enterprises.
(V) Consolidated and Expanded the Fruit of Learning and Practicing Activity, to Promote the Enterprise' Harmonious and Stable Development We implemented the policy set forth by the Party's Fourth Plenary Meeting of the Eleventh Congress, and continued to carry out the learning and practicing activity of the scientific development philosophy in the first half year. We organized the activity of "Year for Propaganda of the Corporate Culture", in which we made the Corporate Culture Construction Program, and run some training classes for the high managerial personnel of corporate culture and for the backbone workers in the propaganda activity. We practiced the responsibility system for building up a good Party conduct, and continued to carry forward the anti-corruption movement. Centering on the celebrations for the 60th birthday of New China and the company's 8th anniversary, we carried out a series of activities. "Harmonious YUDEAN" has won many honors, such as "National May Day Medal for Workers" and so on. The year was a year when YUDEAN won the most honors for workers since its establishment. We made brilliant achievements in the body building movement for all the people; in the year 09, the company won the honor "National Advanced Institution in Sports for the Masses".
Challenges and Opportunities
The year 09 was a year when the economic situation was the hardest since the beginning of the new century. In order to check the downslide tendency, the government practiced a drastic economy stimulating program, and realized the goal to "Ensure the 0.8% Growth Rate of GDP" successfully. Yet, the foundation for the revival of the global economy is not stable now, the intrinsic impetus to the recovery of China's economy is still insufficient, and the structural contradictions are still quite evident. Owing to many uncertainty factors, the economic situation of 2010 will still be very complicated. In the new year, it will be more difficult to control the enterprise cost and ensure the profit coal yard growth, and we shall be faced with great problems and difficulties in several aspects: The Company's Governing
I. The Fire Coal Price Will Bring an Even Greater Shock to the Company's Business. Owing to the prediction that the coal price will rise greatly in 2010, and the international While facing the difficulties, we must coal price will also show a great rising tendency, the price difference between the be firm in our belief, grasp new oppor- domestic and the foreign will narrow down, thus, the company's cost for purchasing tunities, and strive after favorable imported coal is also increasing, so, thermal power operation enterprises are faced with conditions: First, judging from a long a great pressure in operation. run, the state economy and electricity II. Guangdong Native Land's Power Generation Situation Is Not So Optimistic. demand will still grow up stably. It is predicted that in 2010, the power consumption of our whole province will be 385 Second, we have the great support billion kilowatt-hours, with a net increase of 25 billion kilowatt-hours or so, increasing by from the provincial Party committee 7% only over the last year. In 2010, the newly added installed capacity of the province and the provincial government for will be about 7490MW according to a prediction, and plus the 6290MW already added the development of the company. in 2009, it can meet the need for the growth of electricity requirement basically. In the The specific execution method for meantime, it is predicted that in 2010 the system's electric power and electric quantity promoting the provincial enterprises' will be surplus, and the peak regulation of the generating units will be heavier, so, the participation in the central govern- power generation situation will be even difficult. ment's investment projects is being III. It Will Be More Difficult to Get Approval for General Power Supply Projects set down now, and Guangdong Owing to the impact from the national energy policy and structural readjustment, plus Province' Development Program for the letdown of electricity requirement, expansion of general power supply projects has the Nuclear Industrial Chain has clear- met with a bottleneck now. There is a fierce competition around the development right ly suggested that YUDEAN Group of inland electric power projects. should represent Guangdong Province IV. The Environmental Protection Cost and Environmental Protection Risks in the in the investment in major projects Thermal Power Industry Are Going Up Continually. of nuclear power and nuclear In order to address the problem of global climatologic change, our country has promised technology application. These policies at many international conferences to lower the carbon dioxide discharge per unit GDP have offered a great support for the by 40 - 45% from that of 2005, by the year 2020. From 2010, Guangdong Province will company's participation in the cen- practice an even stricter environmental standard, the company's thermal power tral government’s energy projects in generating units and aging units still account for a certain ratio, the continual operation of Guangdong, for its participation in the environmental protection facilities, and their reconstruction will need a great input of the nuclear power development of funds, so, the environmental protection cost and environmental protection risks in the Guangdong. Third, in the macro back- operation of thermal power plants will continue to go up. ground of economic globalization V. The Supervisory Mechanism Cannot Catch Up with the Development Steps. and enhancement of China's com- Along with the company's continual expansion in scale and operation fields, and with petitive power, the company's "Going the complexity and changefulness of the market environment, some of the Company's Out" strategy is faced with new past management patterns and management mechanisms have appeared backwards, opportunities. unable to meet the need for change. Especially the diversified industrial planning and management patterns and managerial system are still in a very passive state. To solve the problems continually in the future new environment, we must continue to innovate our management mechanism.
10 11 2009 ANNUAL REPORT
Working Plan for 2010
Major Targets Targets in Safety and Environmental Protection: Targets in Safety and Environmental Protection: Put an end to accidents involving deaths and serious bodily injuries. Put an end to major equipment breakdowns. Put an end to major fire failures; Put an end to major traffic accidents. Put an end to factory building accidents such as dam failure and waterlogging. No power failure accidents of the whole plant affecting the outside world arising from the negligence of the plant itself. No malignant misoperation accident. No Category A impediment. No general equipment accidents and Category B impediments arising directly from human Maoming Power Plant responsibility.py Exercise strict control over the number of times of general gqp equipment accidents and Category gygy B and Category C impediments; The number ofof times ofof occurrence ofof Category C impediments ofof generating equipment should continue to drop from the same period of the previous year. No occurrence of accidents endangeringendangering occupational health. No occurrence of environmental pollution accidents and events of administrative penalty in environmental protection, and trtryy to become a model (green-brand) enterprise in environmental protection. No occurrence ofof great accidents in the Internet and informationinformation securitysecurity.. TargetsTargets in Operation: Get a main service income ooff 37.683 billion YuanYuan.. ProductionProduction TargetsTargets: TheThe power plants in the company's controlcontrol should generate an electricelectric quantity of 90 billion kilowkilowatt-hoursatt-hours foforr grgridid eenteringntering (the standardstandard spspecifiedecified in tthehe ccombinedombined statementsstatements is 85.8 billionbillion kilowatt-hours)kilowatt-hours) andand havehave a standardstandard coacoall consumption ooff 339339 gramgram / kkilowatt-hourilowattt-hour fforor ppowerower ssupply.upply. The Company's Governing
Business Development Targets: Key Points of Work The scale of the power supply projects under construction under the company's stock controlling should be 11269 MW, the planned amount for production should be 5237.5 MW. We shall join the 1. Consolidate the foundation of produ- nuclear power investment and development work actively, and try ction safety, and optimize our operation, our best to search after overseas investment opportunities for power so as to maximize the company's interest; supply projects. We shall increase our investment strength in new 2. Implant the market consciousness, energy areas. We shall continue to push forward the Blue Sky Project. and strengthen the efficiency awareness, According to the province' requirement, we shall carry forward the so as to upgrade our earning capacity; denitration project of the company's present generating units, and put 3. Analyze the situation carefully, grasp into production Unit 5 and 6 denitration projects of Huangpu Power the development opportunities, and try Plant. In 2010, our shipping industry will deliver 10 newly built ships, our best to open up development add a hauling capacity of 649 thousand dead weight tons, and our space; hauling capacity in service will reach 2080.5 thousand dead weight 4. Endeavor to innovate the manage- tons. We shall build 3 coal mines which will have our stock ment system, so as to improve the participating, and the equity productive capacity of the coal mines enterprise' management performance after getting into production will reach 5 million ton/year. continually; Targets in Anti-corruption Struggle and Party Conduct Construction: 5. Strengthen the political culture The company's high management personnel and the leadership team construction, so as to raise the enter- of each institution of the system should not get involved in any major prise' soft strength all the time. cases of violation of laws or discipline. The fund of the company's head office and each institution of the system should not get involved in any major events of violation of laws or discipline. There should be no other problems concerning violation of laws or disciplines. Targets in Stability Maintaining Work: There should be no events of instability within the enterprise or between the enterprise and other corporations, and the enterprise' internal and external relationship should be harmonious.
12 13 2009 ANNUAL REPORT
Organizational Structure
Board of Shareholders General Affairs Department
Human Resource Department
Strategic Development Department Board of Board of Supervisors Directors Finance Department Production Technology & Safety Supervision Department Operation Group Board of Directors and Legal Affairs Department Auditing and Supervision Department (Discipline Inspection Commission) CPC Party Affairs Department (Corporate Culture Department)
Labor Union
Leader group of YUDEAN Group
Pan Li Chairman of the Board, Secretary
Deng An Director, General Manager, Deputy Secretary
Hong Rongkun Director, Deputy General Manager, Member of Party Committee
Li Zhuoxian Director, Deputy General Manager, Member of Party Committee
Liu Qian Director, Deputy General Manager, Member of Party Committee
Zhong Weimin Director, Deputy Secretary, Secretary of Party Discipline Inspection Commission, Chairman of Labor Union Gao Shiqiang Director, Deputy General Manager, Member of Party Committee, Chief Legal Adviser
Wang Jia Deputy General Manager
Kong Huitian Chief Economist, Member of Party Committee The Company's Governing
The wholly owned enterprises, the holding enterprises and the 1st class shareholding enterprises of YUDEAN Group
The holding enterprises Shaoguan Power Plant The wholly owned enterprises Maoming Heat & Power Plant & the holding enterprises Guangdong Power Development Company Guangdong Yudean Zhanjiang Biomass Power Generation Co., Ltd. Guangdong Shajiao (Plant-C) Power Generation Corporation Guangdong Guanghope Power Co., Ltd. Upper Horn Investment Limited Guangdong Faneng Investment Co., Ltd. Yudean Investment Co., Ltd. Guangdong Yudean Fengshuba Power Generation Co., Ltd. Yet Tact Co., Ltd. Guangdong Yudean Qingxi Power Generation Co., Ltd. Guangdong Lianzhou Yuelian Power Plant Joint Venture Co., Ltd. Guangdong Yudean Nanshui Power Generation Co., Ltd. Zhuhai Hengda Energy Development Co., Ltd. Guangdong Yudean Changtan Power Generation Co., Ltd. Guangdong Yudean Xinfengjiang Power Generation Co., Ltd. Zhuhai Tourist Hotel Company Guangdong Yudean Liuxihe Power Generation Co., Ltd. Guangdong Yangjiang Port Co., Ltd. Guangdong Yudean Changhu Power Generation Co., Ltd. Guangdong Yudean Hydro Power Maintenance and Installation Co., Ltd. The wholly owned enterprises Guangdong Yudean Environmental Protection Co., Ltd.
Zhanjiang Yuheng Electric Power Guangdong Yudean Yunfu Power Generation Co., Ltd. Yunfu Jinhui Electric Power Service Co., Ltd. Maintenance and Installation Co., Ltd. Guangdong Shipping Co., Ltd. Shajiao A Power Plant Development Co., Ltd. Zhanjiang Electric Power Co., Ltd. Zhuhai Special Economic Zone Guangzhu Power Generation Co., Ltd. Guangdong Yuejia Electric Power Co., Ltd. Guangdong Yuelong Power Generation Co., Ltd. Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. Shenzhen Guangqian Electric Power Co., Ltd. Maoming Ruineng Thermal Power Co., Ltd. TSQ-1 Hydro Power Development Co., Ltd. Maoming Zhenneng Thermal Power Co., Ltd. Guangdong Yuehua Power Company Ltd. Guangdong Yudean Oil Shale Power Generation Co., Ltd. Guangdong Yudean Property and Investment Co., Ltd. Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. Guangdong Yudean Xuwen Wind Power Generation Co., Ltd. Guangdong Yueyang Power Generation Co., Ltd. Guangdong Yudean Anxin Electric Power Maintenance and Installation Co., Ltd. Guangdong Yudean Holding Western Investment Co., Ltd. Guangdong Yudean Humen Power Generation Co., Ltd. YUDEAN Group Guangdong Red Bay Power Generation Co., Ltd. Guangdong Yudean Jinghai Power Generation Co., Ltd. Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd. Zhanjiang Zhongyue Energy Co., Ltd. Guangdong Yudean Xinhui Power Generation Co., Ltd. Guangdong Yudean Shipping Co., Ltd Guangdong Zhuhai Power Generation Co., Ltd. Shanxi Yudean Energy Co., Ltd. Guangdong Zhuhai Jinwan Power Generation Co., Ltd.
The holding subsidiaries Guangdong Huizhou PingHai Power Generation Co., Ltd. Guangdong Huangpu Guangdian Petroleum Storage and Transportation Co., Ltd. Guangdong Yudean Finance Co., Ltd. Guangdong Electric Power Industry Co., Ltd. Guangdong Yudean Property Management Co., Ltd. Guangdong Zhongshan Thermal Power Co., Ltd. Guangdong Fangneng Catering Management Co., Ltd. Guangdong Yudean Yunhe Power Generation Co., Ltd. Guangdong Yudean Information Technology Co., Ltd. Guangdong Huizhou LNG Power Generation Co., Ltd. Guizhou Yueqian Electric Power Co., Ltd.
Guangdong Haidian Shipping Co., Ltd. Guizhou Beipanjiang Electric Power Co., Ltd. Shaoguan No.9 Power Group Joint-Operation Co., Ltd. Guangzhou Zhujiang Natural Gas Power Generation Co., Ltd. Shaoguan D Power Plant China Insurance Brokers Co., Ltd. Guangdong Ocean Shipping Co., Ltd. Shenzhen Dapeng LNG Co., Ltd. Guangdong Guohua Yudean Taishan Power Generation Co., Ltd. Guangdong Zhuhai Golden Bay LNG Co., Ltd.
companies Guangdong Dapeng LNG Company Ltd. Guangdong Natural Gas Pipeline Networks Company Ltd.
Shareholding China Dongfang Electric (Guangzhou) Heavy Machine Co., Ltd. Northern United Electric Power Co., Ltd.
Shajiao C Power Plant Hedian Office Yunnan Office Beijing Office Zhuhai Power Plant Branches
14 15 2009 ANNUAL REPORT
Party Construction Work
In 2009, YUDEAN Group implemented the policy set forth by the Fourth Plenary Meeting of the Seventeenth Party Congress earnestly, and tried its best to improve the Party construction work for the group party. We carried out the activity to study and practice the scientific development philosophy in a deep-going way, and our experience and achievements in this respect have been praised highly by the higher authorities; We innovated the learning pattern by setting up the Party Committee's central class, which got a very good effect; We implemented the responsibility system for Party conduct construction and construction of a clean and honest administration, carried out all the regulations on incorrupt working of state-owned enterprises' leadership, continued to fight against corruption, and formed a working pattern characterized by simultaneous planning, simultaneous implementation, simultaneous inspection and simultaneous examination for clean administration construction and Flag-raising ceremony operation management work.
Corporate Culture
Joint development, symbiotic growth, In 2009, YUDEAN Group did down-to-earth work in keeping to justice and making innovation popularization of the General Outline on Corporate Foufsqsjtf! Culture. We made and distributed our Corporate Culture Qijmptpqiz Great virtue, Construction Program, in which we set the target, steps high ability, benefiting the country and contents of the corporate culture construction for the Foufsqsjtf! and helping the people Njttjpo coming 3-5 years for the company, so as to practice it in stages. The company's leaders took the lead in giving Become an energy source lectures on the corporate culture to the employees. The group company Foufsqsjtf! company organized the training classes for the high with international Jefbm competing power management personnel in corporate culture and for the backbone workers in this respect. Each institution of the Dpsf!Dpodfqu! pg!Wbmvf company organized their workers to study the Professional spirit, company's General Outline on Corporate Culture. We high efficiency, collaboration and credibility held many theme events, to further improve the corporate culture construction, helping YUDEAN's culture to take root in the hearts of all the workers. The Company's Governing
3,292,000 4/$RGTUQP Human Resources In 2009, the labor productivity of YUDEAN Group's working employees reached 3,292,000 RMB/person.
In 2009, YUDEAN Group took the activity of building "Work Groups .CDQTRTQFWEVKXKV[QHGORNQ[GGU Excellent in All Four Aspects" as the target, increased its efforts in the exchange of the high-leveled managerial personnel, carried out the supervisory work over the staff's occupational career, and set down the 10000 Yuan/Person Guiding Opinions on the Occupation Career Management of Power 461 Generation Enterprises' Staff". We made proper arrangements for the surplus 329.2 workers from the stopped generating units, dup up the potentials of the 411 289.09 present personnel, and offered great support for the project of construction 361 of new power plants; We improved the excitation mechanism all the time, regulated the manpower use according to law, and reduced the risks in 311 manpower employment. We further improved the corporate annuity 261 managerial system and internal control system, to ensure the value keeping 211 and value increase of the annuity fund, and its safe and stable operation. In 2009, YUDEAN Group added 21 senior technicians and 170 ordinary 61 technicians. The number of persons trained in the whole year reached 1 3112 311: 11500, with a training rate of 91.6%.
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Educational Background Professional qualification structure
Associate degree 34.71% Others 58.39% Bachelor degree Senior professional title 28.63% Technical 4.62% High Technical school secondary school Primary school 12.82% 6.90% professional title 8.73% 22.10% Middle professional title Master degree and above 14.89% 2.83% Middle-school and below 8.73% Dual-professional talent Primary engineer Age distribution 1.34% 1.34% Technical class structure 40-44 year old 35-39 year old Middle-class engineer 20.09% 24.94% Others 32.48% 20.52% 45-49 year old 30-34 year old 12.75% 16.36% Senior engineer Below 30 year old 26.87% 50-54 year old 18.27% 5.19% Senior technician 55 year old and above 9.49% Technician 2.41% 9.49%
16 17 2009 ANNUAL REPORT
TheThhe ComCompany'smpan Performance
Production Safety
94.315 billion kilowatt-hours: In 2009, YUDEAN Group's power plants turned out 94.315 billion kilowatt-hours of electricity for entering the grid. In 2009, the international financial crisis continued to spread, and Guangdong Province' electricity requirement kept shrinking. In the face of internal and external pressures of competition such as forced stopping of generator sets, other power supplies being put into production one after another, and the dual shock from the great increase of power supply to the West, YUDEAN Group worked carefully around its kernel object of "Be strict in production safety, upgrade the equipment reliability, and struggle for generating capacity", always consolidated its production safety foundation, strengthened and improved its productive technology management, went all out to open up the electric power market, dug up the energy efficiency potentials of the excavator sets, made greater efforts in technological innovation, and raised the information application level. In 2009, YUDEAN Group's power plants in the province had a generating capacity approximately accounting for 20.7% of the generated and bought quantity of electricity of the whole province, dropping by 1.57% from the same period of the previous year; It approximately accounted for 29.1% of the whole province' generating capacity, with a year-on-year drop of 1.17%; It approximately accounted for 34.96% of the generating capacity of the provincial grid's tracking sets, with a yyear-on-yearear-on-year drop of 3.38%.
Purchased power 28.86% )WCPIFQPI/CTMGV5JCTGUQH2QYGT)GPGTCVKQPCPF2WTEJCUGKP Unify to allocate other power 32.63%
Unified allocation of power by Yudean Group 20.70&
Energy storage Nuclear power Non-unified 0.91% 8.50% allocation of power ৪ᰯݼЙ֟ᤣྱᐿൖ 8.41% TheCompany Company's Management Performanceࠅິ၄
94.315 DKNNKQPMKNQYCVVJQWTU In 2009, YUDEAN Group's power plants turned out 94.315 billion kilowatt-hours of electricity for entering the grid
In 2009, YUDEAN Group's power plants turned out 94.315 billion kilowatt-hours of electricity for entering the grid, with a year-on-year drop of 3.65%. Among others: The controlled power plants in the province turned out 78.43 billion kilowatt-hours of electricity for entering the grid, with a year-on-year drop of 4.17%, fulfilling the annual plan of the provincial Development and Reform Committee by 100.42%; The controllable power plants outside the province turned out 15.886 billion kilowatt-hours of electricity for entering the grid, with a year-on-year drop of 1.04%, fulfilling the annual electricity buying plan of the Southern Grid by 95.77%. In 2009, YUDEAN Group did not have any accidents with personal deaths in its power production in the whole year; did not have any major equipment breakdown; did not have any power production traffic accident and fire; did not have any destructive accidents such as dam failure, waterlogging of the factory building and so on; had category B equipment impediment for 1 time, and category C impediment for 34 times. The equipment impediment rate was basically the same as the previous year, and the general production safety situation was stable. With the concerted efforts of all the staff, YUDEAN Group reached the excellent value of the annual check indicator of the provincial Committee of State-Owned Assets for electric quantity entering the grid, 24 days ahead of the schedule, and kept the excellent result for nine years in succession.
DŽg/kWhDž DŽujnftDž DŽ&Dž
511 51 7 7PKVQRGTCVKQPUVCVWU 333.27 335.33 35 34 5.76 5.84 411 41
311 31 6
211 21
1 1 5 3119 311: 3119 311: 3119 311: Coal consumption Average direct station service for power supply C-class or above obstacle power consumption rate 'SWKXCNGPVCXCKNCDKNKV[EQGHHKEKGPV DŽ&Dž :5 92.48% 2008 :3 90.94% 91.04% 91.03% 90.48% 90.24% 2009 :1
99
97 Hydro Thermal Average Hydro Thermal Average power power power power
18 19 2009 ANNUAL REPORT
State of Operation
In 2009, in the face of the bad attack from the international financial crisis and the ups and downs of the market environment, YUDEAN Group adjusted the managerial means in time, and further emphasized economic analysis and cost control. So, although the grid entering electric quantity dropped from the previous year, it not only reached all the check indicators satisfactorily, turning a loss into profit in all its thermal power plants, but also got the best operating profit since its establishment.
Further Strengthened Fuel Operation Management, and Made Profit in the Whole Product Flow Area. In 2009, in the fuel work, YUDEAN Group took "Innovate Management, Optimize Resources, Control Cost, Serve the Power Plants, and Bring More Benefit" as the main task, hit out aggressively, seized the market opportunities, employed all available means to realize all the key contracts, tried its best to buy low-priced coal from Australia, Indonesia, Vietnam and Russia, made good arrangements in transportation, hence, the coal supply was safe and economical, the coal quality was obviously improved, and the coal price cost was greatly lowered. In the year, we realized a coal supply of 32,500,000 ton, with a year-on-year drop of 1.4 billion Yuan in fuel cost. We signed 5-year long-term agreements with some major state-owned mines and foreign coal enterprises, which has ensured the electricity and coal supply for the coming four years. The operation management in the product flow area showed some initial results, realizing a profit on the whole, which has made a good start for lifting the earning capacity of the product flow area in all aspects.
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DŽ0.1 billion YuanDžDŽ0.1 billion YuanDžDŽ0.1 billion YuanDž 1057.88 611 611 2111 407.20 916.62 392.80 888.91 511 511 364.53 :11 339.16 330.82342.19 835.30 310.29 335.29 411 272.92 411 293.69 911 255.46 228.03 720.64 311 311 811 630.95 211 211 711
1 1 611 15 16 17 18 19 1: 15 16 17 18 19 1: 15 16 17 18 19 1:
Examine operation incomes Examine net capitals Examine capitals The CompanyCompany's Management Performanceࠅິ၄
40.72 DKNNKQP;WCP In 2009, YUDEAN Group earned a business income of 40.72 billion Yuan, with an increase rate of 3.00% from the last year.
Did Active Communication Work, and Made New Breakthroughs in "Planned Use of Electricity, Economical Use of Electricity and Safe Use of Electricity". We tried our best to reach the annual power generation target, and optimized the repair mode of operation of the units. Our yearly planned electric quantity decreasing amplitude was lower than the average level of the province, and our unit load rate was higher than the average level of the province. The company fulfilled the grid entering electric quantity check indicator ahead of schedule, and kept excellent in that indicator for nine years running.
Innovated Managerial Methods, and Strengthened Financial Management Continually. We optimized our basic financial management, and implemented the New Accounting Standard and New Working Rule of Value-added Tax smoothly. By executing the internal performance examining method, we started to use the competitive ranking mechanism; By introducing some new methods such as "standard cost", "contribution margin per unit", "rational economic storage", "area analysis" and so on, we raised the rationality and effectivity of cost control. By improvement of cash flow forecast and management, and by carrying forward the work of "uniform settlement and uniform credit and loan", we enhanced the intensivism and specialized management of the funds.
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DŽ10000 TonDž DŽ10000 TonDž DŽ10000 TonDž 4055.25 2987.81 98 5111 3738 4111 2912 211 3532 2765 3611 3056 2234 91 4111 2727 2130 3111 71 3111 2611 51 2111 30 2111 611 31 13 6.32 2.73 1 1 1 16 17 18 19 1: 16 17 18 19 1: 16 17 18 19 1:
Annually raw coal Annually standard Annually fuel oil consumption coal consumption consumption
20 21 2009 ANNUAL REPORT
Development and Construction
Implemented the Low-cost Expansion Strategy Actively In April 2009, YUDEAN Group spent 1.98 billion Yuan to buy 20% stock ownership of North United Power Company that has an installed capacity of 14000MW and a coal storage volume of billions of tons of coal, becoming the second largest major shareholder of the largest power generation enterprise of Inner Mongolia, which has further expanded the company's development space outside the province, and Zhuhai Power Plant and Jinwan Power Generation Company laid a solid footing for opening up coal resource strategic places. This successful purchase became a major achievement of YUDEAN Group using the mode of stock purchase to realize its low-cost fast expansion strategy in the unfavorable environment of financial crisis.
Carried Forward the Construction Projects Stably and Tianyi Power Plant Orderly In 2009, YUDEAN Group carried out the construction of a total of 7049.5 MW of generating units smoothly, and at the same time, continued the desulfurization and denitration projects, bringing a new peak in construction projects; We did proper preparation work for a group of earlier-stage projects, such as Maoming's project. Luoding Yunfu Power Plant Power Plant Progress of YUDEAN Group's Power Supply Projects in 2009: (270MW) Ŕ Yunfu Power Plant's C Plant (2×300MW)'s fire coal power project of circulating fluid bed: Up to the end of December 2009, the overall field Maoming Thermal Power Plant leveling work had been completed by 98%. The major construction project (800MW) had been completed by 78.9%. The installation work had been completed by 41%. Zhanjiang Power Plant Ŕ Pinghai Power Plant's First-stage Construction Project (2×1000MW): (1200MW)(1200MW) Up to the end of December 2009, the installation work had been completed Zhanjiangg YangqianYanngqian wind powerwer projectproject ZhanjiangZhaZhanjinjia Yangqian by 66%. (37.5MW)(37.5MW)5MW) windwind ppower farm (12MW)(12MW) Ŕ Zhanjiang Yangqian Wind Power Project (33×1.5MW): Up to the end of December 2009, the installation work had been completed by 96.6%. The CompanyCompany's Management Performanceࠅິ၄
19787.2 /9 In 2009, YUDEAN Group's total installed capacity reached 19787.2 MW.
Guizhou Pannan Power Plant (2400MW)
Tianyi Hydro Power Plant (1200MW)
Lianzhou Power Plant Changtan Hydro Power Plant (520MW) Nanshui Hydro Power Plant (60MW) (75MW) Qingxi Hydro Power Plant Yangshan Power Plant (144MW) (185MW) Fengshuba Power Plant Shaoguan Power Plant (160MW) Penglatan (1016MW) Hydro Power Plant (44MW) Meixian Power Plant Changhu Hydro Power Plant (520MW) (76MW)
Liuxihe Hydro Power Plant Xinfengjiang Hydro Power Plant (50MW) (347.5MW) Shibeishan Power Plant (100.2MW)
YunfuYunfu PowerPowe Plant Hvboh{ipv HuizhouHuizhou LNGLNG PowerPower PlantPlant Huilai Power Plant (600MW)(600MW) (1170MW)(1170MW) Huangpu Power Plant(1100MW) Shanwei Power Plant (1200MW) (1200MW) Shajiao C Power Plant Shajiao A Power Plant (1980MW) (1240MW) PinghaiPPini ghai Power PlPlantPlan (2000MW)(22000MW) Jinwan Company (1200MW) Qianwan LNG Powerr Plant (1170MW) Zhuhai Power Plant (1400MW)
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Hydro power plant Thermal power plant Wind power farm LNG power plant
Power generation project granted by Yudean in 2009: 8 wind power generating units totaled 12MW capacity in Yangqian Power generation projects are expected to be operated in 2010: Unit 1 and 2 of Pinghai Power Plant are expected to be operated in Aug. and Dec. respectively. Unit 5 and 6 of Yunfu Power Plant are expected to be operated in Jun. and Sep. respectively. Yangqian wind power project (25 wind power generating units) is expected to be completed and operated in March (37.5MW).
22 23 2009 ANNUAL REPORT
Fast and Optimized Development of Diversified Areas We have already started the second-phase purchase of stock on the foundation of stock participating in the Suanlagou Project of Inner Mongolia, and the final ratio of stock participating is 24%. Moreover, we have continued the development of the Xilinguole Coal Mine Project of Inner Mongolia, the Yiqi Hongqing River Coal Mine Project, and so on. After all the coal mine projects are put into operation, our yearly output of equity coal will reach 7.711 million ton / year. We seized the opportune time of 2009 when the international shipping market Signing ceremony of coal agreement was in a low position, to expand our shipping capacity; in 2009, we bought 4 secondhand bulk vessels of 70,000 ton grade and put into service 2 newly built bulk vessels of 92,500 ton grade, making our controllable hauling capacity increase by about 470,000 dead weight tons. According to the hauling capacity building plan, by the end of 2011, YUDEAN Group's controllable hauling capacity will reach 2,470,000 dead weight tons. We continued to participate in the construction of LNG receiving stations and natural gas trunk pipe networks within the province. Zhuhai LNG receiving station in which we have stock participating will be approved in the near future, and the project construction will be started in 2010. Guangdong Province' natural gas trunk pipe network project in which we have stock participating has already got the approval from the provincial Committee of Development and Reform, and its construction has been started. We sped up the construction of the coal product flow transfer project, to enhance the company's safety control capacity for electricity and coal. Bohe Harbor Area's coal wharf project has already got the approval from the provincial Committee of Development and Reform, and its earlier-stage work has begun. It has been listed into the second batch of projects for expansion of domestic demands in Guangdong Province; Zhuhai Gaolan Harbor's Coal Storage and Transportation Center Project has got into its earlier stage work, such as market research and feasibility study. After the stock participating in 26.11% stock ownership of Dongfang Heavy Machinery, we continued to support and participate in the third-stage sea gate base construction of Dongfang Heavy Machinery and its 3G nuclear power technical transformation project.
Inner Mongolia Suanlagou Coal Mine Location Zhungeer in Inner Mongolia Reserves: mine areas of 49.8086 square kilometers, reserves of 1.42 billion tons in mine filed, recoverable reserves of about 540 million tons. Benefit: It is a mine and related coal preparation plant with 12 million tons annual production capacity. Additionally, it owns a more than 20km long dedicated rail, and its service life is designed to be 34 years. The projects had been completed and commissioned. Shanxi huerxinhe coal mine Location: Changzhi County, Changzhi City in Shanxi Province Reserves: mining areas of 71.39 square kilometers, geological reserves of 545.59 million tons in mine field, recoverable reserves of 236.2 million tons. Benefits: It is expected to be completed in 2010. After it reaches the expected capacity, annually coals are 3 million tons. Guizhou Xiangshui Coal Mine In 2003, Yudean held the 27% shares of Guizhou Xiangshui Coal Mine through Yueqian Company. Location: Pan County, Guizhou Province Benefits: Coal output reached 1.3 million tons in 2008. It is expected to reach the expected capacity by 2010, with annual output of 4 million tons.
&QOGUVKECPFCDTQCFRTQRGTV[RTQHKNG QH;WFGCP)TQWR Guizhou Mayi Coal Mine In 2003, Yudean held the 23% shares of Guizhou Mayi Coal Mine through Yueqian Company. Location: Panxian, Guizhou Province Benefit: an annual output of 2.4 million tons in Phase I project. TheCompany Company's Management Performanceࠅິ၄
146.8 OKNNKQPNQCF 6QP Yudean Group reaches 1.468 million load capacity(Ton), increased by 48% compared to the same period last year.
Made New Breakthroughs in Clean Energy Development In 2009, after getting the support from the provincial government, we represented Guangdong Province to invest in some major projects in nuclear power and nuclear technology application fields. Zhanjiang Biomass Project has got the approval for start of construction, and it is the biomass power generation project with the greatest unit capacity in China so far. the planning and building of Zhanjiang wind power base is in progress steadily. We made breakthroughs in the field of solar power generation, Yangqian wind power generation field our College City's solar power generation project has got the approval, and been listed into the state's Golden Sun Demonstration Projects. We have worked hard to probe into the clean energy development mechanism. After the Shibei Mountain Wind Electricity CDM Project of 2008, our CDM projects in Huizhou and Qianwan LNG power plants also got registered successfully. The successful registration of the three CDM projects have already brought about and will continue to Huizhou LNG Power Generation Company bring about an annual revenue of 0.1 billion Yuan for the company each year.
Made All-out Efforts to Carry Forward the "Going Out" Strategy We worked hard to open up the overseas market, searching after investment opportunities such as the power generation project in Indonesia. In light of the strategy "Taking Electricity as the Core, and Making Well-coordinated Development in Relevant Diversified Industries", we tried our best to seek overseas investment opportunities in high rank coal mine projects. After Upper Horn Company's successful stock participating in Australia's Narrabri Coal Mine Project (with stock participating of 7.5%; after the first-phase project is put into production, the yearly output will be approximately 6 million ton) and Indonesia's DBP Coal Mine Project (with stock participating of 24%; the first-stage construction scale is 1 million ton, and it is predicted that the project will be put into production at the end of 2010 or at the beginning of 2011), we are tracking the coal projects in places with rich coal resources, such as Western Australia, Queensland, Indonesia's East Kalimantan and other places. We took an active part in the tapping of resources in West China. The earlier-stage work of Unit 5 and 6 of Pannan Power Plant of Guizhou has already been started up, the Coal and Electricity Joint-operation Project of Weixin of Yunnan (2×600MW) has got the approval from the state for its earlier stage work; Binglang River and Linchang River Drainage Area's hydro power resource exploitation is being carried forward in a good order.
DBP coal mine in Indonesia Location: Kalimantan West Kutayi County Reserves: mine areas of 45.95 square kilometers, the total geological reserves of about 53 million tons. Benefits: initial annual output of 1 million tons.
Nalabulai Coal Mine Project Location: Gan nada Basin in New South Wales Reserves: mine areas of 71.39 square kilometers, reserves of 545.59 million tons in mine field, in which recoverable reserves of 236.2 million tons. Benefit: the proved reserves of 0.44 billion tons in northern project at the early development period, annual production of coal mine of 7 million tons.
24 25 2009 ANNUAL REPORT
Enterprise Citizen
Electric-power Output
In 2009, YUDEAN Group's power plants turned out an accumulative total of 100.689 billion kilowatt-hours of electricity. Since its establishment, the company's accumulative total of electric-power output has reached 669.854 billion kilowatt-hours, making a great contribution to guaranteeing of the whole province' electricity supply, and to promoting of Guangdong Province' economical development.
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104.4 95.5 100.689 62.3 66.5 76.5 52.5 68.3 43.0
3112 3113 3114 3115 3116 3117 3118 3119 311: Enterprise Citizen
100.689 DKNNKQPMKNQYCVVJQWTU Green YUDEAN In 2009, YUDEAN Group's power plants turned out an accumulative total of 100.689 billion kilowatt-hours of electricity.
As Guangdong Province' largest power generation enterprise, YUDEAN Group took the lead in the whole country in implementing the "Blue Sky Project" taking coal-fired power plants' flue gas desulfurization as the main work, advocated the philosophy of cycling economy, re-enforced development efforts for clean energy, and in 2008, it completed the first stage of "Blue Sky Project", becoming the first power generation enterprise in China whose subordinate power plants' generating units have gone through the desulfurization process completely. In 2009, YUDEAN Group carried out the second-stage work of the "Blue Sky Project", started up the denitration reconstruction work for the fire coal sets in active service represented by Unit 5 and 6 of Huangpu Power Plant; the denitration equipment of Unit 5 and 6 of Huangpu Power Plant are planned to be completed and put into production in 2010. The company's new generating units' desulfurization project and denitration project are being carried out orderly according to the synchronized construction. Desulfurization
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(kg /10000 kWh) (kg /10000 kWh) 61 44.86 46.21 21 8.08 41.52 40.45 41.65 51 9 28.52 5.31 41 7 4.50 4.67 3.67 31 5 3.43 3.56 13.47 10.91 1.69 21 4.73 3 1.11 1 1 12 13 1415 16 17 18 19 1: 12 13 1415 16 17 18 19 1: Sulfur dioxide emission statistics Dust emission statistics
DŽ&Dž DŽ&Dž 100 100 100 100 100 100 100 100 98.28 211 98.17 211 96.7 90.11 :6 93 90.88 :1 81.72 :1 79.98 91 96 81 66.78 91 88 86 71 12 13 1415 16 17 18 19 1: 12 13 1415 16 17 18 19 1: Wastewater standard discharge rate Comprehensive utilization rate of ash
26 27 2009 ANNUAL REPORT
5.543 DKNNKQP;WCP Paying Taxes In 2009, YUDEAN Group paid a tax of 5.543 billion Yuan altogether.
In 2009, YUDEAN Group paid a tax of 5.543 billion Yuan altogether. From its establishment in 2001 till now, YUDEAN Group has turned in a tax of 38.447 billion Yuan altogether.
Mr. Sun Qin, deputy director general of State Bureau of Energy Source, and Mr. Pan Li, Chairman of the Board of Directors, are inspecting the control room of Jinwan Power Plant.
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71 55.04 54.84 55.43
61 43.00 42.57 42.16 39.09 51 35.94
41 21.44 31
21
1 31123113 3114 3115 3116 3117 3118 3119 311: Enterprise Citizen
3.5 OKNNKQP;WCP Helping-the-poor Activities Up till now, YUDEAN Group has spent more than 3.5 million Yuan for all kinds of helping-the-poor projects.
In 2009, YUDEAN Group continued to implement the policy of "Let Thousands of Cadres Go to the Base Level and Stay in the Countryside", carrying out the mutual help activity with the base-level Party organi- zations of 46 rural Party branches in 4 towns of Luhe County. In the September of the same year, the company offered a financial aid of 500,000 Yuan to Luhe County, for helping-the-poor work in the region, supporting the construction of socialist new countryside with actual deeds. Up till now, YUDEAN Group has spent more than 3.5 million Yuan for all kinds of helping-the-poor projects. Contributions to poverty eduction According to an incomplete statistics, since its establishment, YUDEAN Group's institutions and individuals have donated money to hundreds of children unable to go to school, built 4 Hope Primary Schools, and helped 13 poor villages, making contributions to the educational business of the poverty-stricken regions.
Public Benefit
In 2009, YUDEAN Group took an active part in all kinds of public benefit activities, such as organizing people to visit asylums of the aged, helping children from single parent families, aiding poverty- stricken orphans and so on, spreading the spirit "dedicating to the society with love, and warming the society with true feelings" effectively, and making contributions to the public welfare undertaking.
Arbor Day activities
28 29 2009 ANNUAL REPORT
The Company's Honors
January
Shaoguan Power Plant and Yuelong Company were awarded the honorary title "National Advanced Institution in Spiritual Civilization Construction".
February
Shajiao A Power Plant won the title "Advanced Institution of 2008 in Physical Fitness Activities for All the People".
March Shajiao A Power Plant won the title "Most Credible Enterprise of China in 2008".
April YUDEAN Group won the title "Excellent Institution of 2008 of Guangdong Province' Power Sector in Communication Work". Zhuhai Power Plant and Shajiao A Power Plant's informationalization project won "Ten Major Awards for Innovation Fruits of 2008 in China's Electric Power Informationalization".
May 4 persons from YUDEAN Group were elected as model workers of Guangdong Province, 3 persons won "National May Day Labor Medal", and 1 person won "Guangdong Province' May Day Labor Medal"; Shajiao C Power Plant won the title "National May Day Labor Award"; E Work Group of Operation Department of Guangqian Company, Desulfurization and Environmental Protection Department of Jinwan Power Generation Company, Group 1 of Service Department of Lianzhou Power Plant, and Group 1 of Thermal Control of Equipment Department of Jinghai Power Generation Company won the honorary title "National Pioneer Workers".
June
Unit 4 of Jinwan Power Generation Company was rated as "National Gold Medal Unit of 2008 in Thermal Power Generation Reliability (grade 600MW)". YUDEAN Group won the title "Provincial Excellent Institution of 2005-2008 in Archives Working Quality of Major Construction Projects". YUDEAN Group ranked at No. 8 in the ratings of "Top 100 Enterprises of Guangdong Province of 2009" with its business income of 46.3 billion Yuan, advancing by 6 positions in comparison with the previous year. Guangdong Electric Power Development Joint-stock Company ranked at No. 8 in the ratings of "Top 50 Listed Companies of Guangdong with the Highest Investment Value". The Company's Honors
September
YUDEAN Group ranked at No. 124 in the "Top 500 Enterprises of China in 2009" with its business income of 46.3 billion Yuan. In YUDEAN Group, 1 person won the title "National Excellent Entrepreneur in the Power Industry"; Huizhou LNG Power Generation Company, Guangqian Company, Tianyi Power Plant and Xinfengjiang Power Generation Company were rated as "National Excellent Enterprise in the Power Industry".
October
Shajiao C Power Plant and Xinfengjiang Power Generation Company won "National Quality Award of 2009 in the Power Industry".
November
YUDEAN Group entered the ratings "100 Largest Enterprises of Guangdong Province and 100 Largest Industrial Enterprises of Guangdong Province", ranking at No. 23 and No. 12 respectively. Shajiao A Power Plant, Huizhou LNG Power Generation Company and Guangqian Company won the title "First Batch of National Class AAA Enterprises in Credit in the Power Industry in 2009". YUDEAN Group won the title "National Advanced Institution in Mass Sports".
December
YUDEAN Group won the title "National Advanced Institution in Enterprises' Workers' Education and Vocational Training". YUDEAN Group won the title "Provincial Advanced Institution in State-owned Enterprises in the Activity of Building Leadership Teams Excellent in Four Aspects". YUDEAN Group won the title "Advanced Institution in the Activity of Mutual Help between Urban and Rural Base-level Party Organizations". In the operating performance examination of 2008 of enterprises belonging to Guangdong Province' Committee of State-Owned Assets, YUDEAN Group won the "Excellent" award, which was the eighth time of winning such honors in succession since its establishment. 2 persons from YUDEAN Group won the title "National Technical Master-hand", 2 persons won "National Award for New Star Nurturing in the Power Industry", 2 persons won the title "National Advanced Worker in the Training Certification of the Power Industry", and 8 persons won the title "Technical Master-hand of Guangdong Province".
30 31 2009 ANNUAL REPORT
Memorabilia
January
January 8 YUDEAN Group held its Production Safety Work Videophone Conference of 2009. January 12 Guangdong Province' Vice Party Secretary and Provincial Governor Huang Huahua, and Huang Longyun, member of Standing Committee of Party Committee of the province and Executive Vice-governor, led a team to inspect YUDEAN Group, highly praised YUDEAN's achievements in the past years and its outstanding contributions to the province, and showed consent to YUDEAN's measures to cope with the current predicament. January 20lj22 YUDEAN Group's Second Meeting of Second Congress of Workers and Staff and Working Conference of 2009.
February
February 9 "YUDEAN(Yunfu)'s Desulfurizer Production Delivery Base" held its ground breaking ceremony for its second-stage engineering construction at Yunfu. February 12 The signing ceremony for the investment cooperation framework agreement on Unit 4 and 5 (2×1000MW) of Shajiao C Power Plant Expansion Project was held in Guangzhou. February 27 Upper Horn Investment (Australia) Limited and Guangdong Province Electric Power Industry Fuel Company's Australia-based Office, Shajiao A Power Plant held their opening ceremony together at Brisbane City, capital of Queensland of Australia.
March
March 4 YUDEAN Group held its working conference of 2009 on discipline inspection and supervision. March 9 YUDEAN Group held the first meeting of the leading group for placement of surplus personnel from enterprises that had closed off their generating units. March 20 Chen Zhili, vice-chairman of Standing Committee of the National People's Congress, led a delegation to Zhuhai Power Plant to investigate on prevention and control of atmospheric pollution. March 20 YUDEAN Group held its videophone conference to sum up the learning and practicing activity of the Party's policy.
April
April 8 "YUDEAN No. 1" ship held its virgin voyage ceremony at Caofeidian Harbor's dock. April 20 Huang Longyun, member of Standing Committee of Party Committee of Guangdong Province and executive vice-governor, came to Yunfu Power Plant for a survey. Memorabilia
April 20 YUDEAN Group and Hong Kong's CITIC Pacific Co., Ltd. signed Stock Ownership Agreement on Transfer of 20% Stock Ownership of North United Electric Power Limited Liability Company between CITIC Pacific Co.,Ltd and Guangdong YUDEAN Group Co., Ltd., according to which, YUDEAN Group spent 1.98 billion Yuan to purchase 20% stock ownership of North United Power Company held by CITIC Pacific, becoming the second largest major shareholder of the largest power-generating resource enterprise of Inner Mongolia. April 30 At the Meeting of Celebration of May Day and Model Worker Commending Meeting of Guangdong Province, 7 comrades and 5 institutions (including work groups) from YUDEAN Group won awards of different types, and the meeting was one at which YUDEAN won the most honors since its establishment. May
May 7 General Xin Rongguo, Member of Standing Committee of Provincial Party Committee and Provincial Military District Commander, came to Jinghai Power Generation Company for an inspection. May 9 Wang Xudong, Party Secretary and Chairman of State Electricity Regulatory Commission, led a delegation to survey Huizhou LNG Power Generation Company. May 14 and 20 Huizhou and Guangqian's LNG power plants' CDM projects got registered in United Nations successfully. They were two CDM projects successfully registered again after YUDEAN Group registered its Huilai Shibeishan Wind Power CDM project for the first time on September 17 last year. May 20 YUDEAN Group and China Shenhua Group signed Long-term Coal Supply and Demand Cooperation Agreement for 2009-2013. May 27 YUDEAN Group and Zhuhai Municipal People's Government signed the comprehensive co-operation framework agreement, which was a substantial fruit the two parties got in their comprehensive co-operation in the new situation.
June
June 9 The authentication work group composed of some departments concerned, such as Guangdong Province' Archives Bureau, the Provincial Committee of State-Owned Assets, the Provincial Cooperation Group and so on, carried out state second-grade evaluation and authentication to YUDEAN's general archives work target management; after the strict evaluation, the company passed the state secondary-grade authentication with a high score, which marked YUDEAN Group's archives management level reached a new height. June 13 Mr. Wang Yang, Central Politburo Member and Party Secretary of Guangdong Province, Huang Huahua, Vice Party Secretary and Provincial Governor, Huang Longyun, Member of Standing Committee of Party Committee of the province and Executive Vice-governor, Wan Qing, Vice-governor, and other leaders, came to inspect Honghaiwan Company. June 29 YUDEAN Group and Zhonghai Development Joint-stock Company signed Cooperation Agreement on Maritime Coal Transportation. Wang Yang and Huang Huahua visit Red Bay Company
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June 28 The appraisal activity for the "Top 100 Enterprises of Guangdong Province in 2009" jointly sponsored by Guangdong Province Enterprise Association, Guangdong Province Association of Entrepreneurs and the periodical office of Southern Entrepreneurs came to a conclusion and the result was released. YUDEAN Group ranked at No. 8 in the ratings of "Top 100 Enterprises of Guangdong Province of 2009" with its business income of 46.3 billion Yuan, advancing by 6 positions in comparison with the previous year. June 29 "YUDEAN 101" ship held its handing-over ceremony at Xin Yangzijiang Shipyard. It was the first newly built ship by YUDEAN for official operation, and will provide new motive power for YUDEAN's coal transportation.
"Yudean 101" Round Handover Ceremony July
July 22 Mr. Huang Huahua, Vice Party Secretary and Provincial Governor of Guangdong Province came to survey the third-stage worksite of Yunfu Power Plant. July YUDEAN's Zhanjiang Biomass Power Generation Project (2×50MW) passed the examination by the provincial Committee of Development and Reform, and got the official approval. It is the greatest biomass power generation project in China at present, so, the approval of the project is of milestone significance to YUDEAN's development of renewable new energy, and will play a great promoting role to development of our country's large-capacity biomass power generation technology. July 16-17 YUDEAN Group held its midyear operation working conference of 2009. July 30㧙31 YUDEAN Group held the Mobilization Meeting for Regulating the Share-holding Investment of the Affiliated Enterprises' Employees and for Deepening the Reform, which marked YUDEAN Group began to regulate the share-holding investment of its state-owned enterprises' employees in all aspects.
August
August 10 Mr. Sun Qin, Deputy Director General of State Bureau of Energy Sources, came to inspect Zhuhai Power Plant's project. August 17 Mr. Liang Weifa, Member of Standing Committee of Party Committee of Guangdong Province, Party Secretary of Committee of Politics and Law of the province and Head of Public Security Department, came to inspect Honghewan Company. August 4 Mr. Zhou Zhenhong, Member of Standing Committee of Party Committee of Guangdong Province and Head of Department of United Front, came to Yunfu Power Plant to inspect its third-stage project. August 11 YUDEAN Group and South China Institute of Technology signed Guangdong YUDEAN and South China Institute of Technology's Cooperation Agreement on the Demonstration Grid Entering Power Station of Solar Energy Power Generation, according to which, YUDEAN Group invested approximately 0.14 billion Yuan, to cooperate with South China Institute of Technology in the construction of a grid entering power station of solar energy power generation in its southern school area, which would be the largest one of this type of power station in Guangdong Province.
September
September 11 YUDEAN Group and China National Coal Group Corp. signed Cooperation Agreement on Long-term Coal Supply and Demand for 2010-2014, according to which, in the coming five years, China National Coal Group would supply 39 million ton coal to YUDEAN for power generation. Memorabilia
September 29 YUDEAN Group and Yitai Group of Inner Mongolia signed Long-term Coal Supply and Demand Cooperation Agreement for 2010-2014. According to the agreement, in the future five years, Yitai will supply 23 million ton coal to YUDEAN for power generation, which will further establish the long-term stable strategic cooperation partner relationship between the two parties. September 5 On September 5, 2009, the list of Top 500 Chinese The signing ceremony for 2010-2014 Long-Term Coal Enterprises of 2009 rated by China Enterprise Association and China Supply And Demand Cooperation Agreement Entrepreneurs Association was released officially, and YUDEAN ranked at No. 124 with its business income of 46.3 billion Yuan.
October
October Haidian Ship Building Company's "Xin Ping Hai" ship held its virgin voyage ceremony. October 23 Mr. Wen Guohui, Director General of Guangdong Province' Committee of State-owned Assets, Mr. Zhang Xiaomu, Deputy Director General, and other leaders, came to YUDEAN Group for investigation.
November
November 1 At the press conference jointly held by Guangdong Province Committee of Economy and Informationalization, Guangdong Province Statistics Department, Guangdong United Investigation Head Office of State Statistics Bureau, the ratings of "Top 100 Enterprises and Top 100 Industrial Enterprises of Guangdong Province in 2008" were released, in which YUDEAN Group ranked at No. 23 and No. 12 respectively. November 8 "YUDEAN 8" ship finished its virgin voyage. November 13 Maoming Power Plant and Oriental Group signed the contract about the equipment of the three major host machines of the 1×600MW "Replace Small Units with Big Ones" coal-fired power generation project, marking that a crucial step has been taken in the "Replace Small Units with Big Ones" 1×600MW coal-fired power generation project .
December
December.1 YUDEAN Group held the symposium on placement of surplus personnel from enterprises that had closed off their generator sets. December.1 The first generating unit of Dongqing Hydro Power Station in which YUDEAN Group has stock participating (220MW) finished its trial operation of 72 hours, and shifted into commercial operation directly without significant deficiency, entering the grid for power generation. December.3 Guangdong YUDEAN Information Technology Company Limited held its founding celebration ceremony.
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2009 ANNUAL REPORT No.2, Tianhe Dong Road, Yudean Square in Guangzhou Post code: 510630 Tel.: 020-85138888 Fax: 020-85136666 Website: http://www.gdyd.com